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While the exact definition for this alluring subsector can be quite varied, the term generally applies to those companies engaged in developing and deploying technology designed to make financial services more efficient.

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Vantiv makes the new chip cards and also accepts payments on behalf of the merchants, thereby acting as an electronic middleman.Earnings growth for Vantiv has exceeded 20 per cent annually over the past few years.With only a third of US cards on the newer system, this trend has much farther to run.The fintech subsector may seem too trendy to some investors and others might shy away on the basis of valuation or even perhaps the industrys vulnerability to a global economic downturn.The fintech moniker became popular as a result of the proliferation of Silicon Valley start-ups aimed at disrupting traditional banking and financial services platforms.

Almost everywhere, the internet is rapidly changing the way consumers do business.

Just as has disrupted the traditional retail shopping mall, financial services customers are looking for technology to provide lower costs, faster execution and more intelligent processing of data.

Silicon Valleys answer to the quest for efficiency has been new companies such as Square Inc, which allows point-of-sale software tracking through mobile phones and Transferwise Limited, which facilitates a more efficient process for exchanging currencies across borders.

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Heavy hitters including Apple and Google are in on the game, but even the commercial banks and asset managers cannot be counted on to stay away.